In January 2024, Vietnam received $2.36 billion in foreign direct investment (FDI), a 40 percent increase over the same period last year. This is a sign of investor confidence in the Vietnamese economy.

The Vietnamese government has made a concerted effort to attract foreign investment in recent years. It has streamlined the investment process and offered tax breaks and other incentives to foreign companies. This strategy is paying off, as Vietnam is now seen as a viable alternative to other countries in the region.

Vietnam reported good news in January 2024: FDI, including newly registered, additionally invested and contributed capital, to Vietnamese enterprises reached $2.36 billion, an increase of 40 percent over the same period last year. The implemented FDI capital was $1.48 billion, up 9.6 percent.

The investment capital of large newly registered projects, capitalized at hundreds of millions of dollars, increased by 67 percent.

The projects are mostly located in large cities and provinces, including Hanoi, Ba Ria – Vung Tau, Bac Giang, Bac Ninh, Dong Nai, Hai Phong and HCM City. The seven localities alone accounted for 72 percent of total capital of newly registered projects, and 82.5 percent of total investment capital of the country.

Analysts say that the FDI upward trend appeared in late 2023. Vietnam attracted $36.6 billion worth of FDI last year, up 32 percent over the year before. Of this, newly registered capital was $20.2 billion, up 62 percent, which showed high interest and confidence in Vietnam’s investment environment.

The FDI implemented capital in 2023 was estimated at $23.18 billion, up 3.5 percent over 2022. 

BCI (Business Confidence Index) Report released by EuroCham showed that 45 percent of polled investors in the fourth quarter of 2023 considered Vietnam a strong rival in attracting FDI compared with other countries, despite challenges. 

Meanwhile, 29 percent listed Vietnam among the leading competitive countries in ASEAN, and 2 percent considered Vietnam as the leader in industry.

Notably, the upward trend of FDI in Vietnam occurs amid anticipated uncertainties in global FDI flow. The recovery of Asian countries may create a stronger driving force to retain and attract new investors.

The geopolitical competition among large economies with new standards applied by some governments may impact the FDI trend. There have been signs of investors’ repatriation and shifting their production bases to home countries and close allies after Covid-19 and the Russia-Ukraine conflict.

FDI capital flow gathers in groups of countries with geopolitical links, especially in strategic fields. The implementation of the Global Minimum Tax regime and related groups of policies in many countries will also affect FDI flow.

Foreign relation activities

High-ranking foreign activities of leaders of the Party, State, National Assembly and the government were organized successfully in 2023, including the official visit to China by the Party Secretary General Nguyen Phu Trong, reception of US President Joe Biden in September, and reception of the Chinese Party Secretary General and President Xi Jinping.

The other important foreign affairs in 2023 included the Vietnamese President’s visit to Japan, during which the two sides agreed to upgrade the Vietnam-Japan relationship to a comprehensive strategic partnership; the Vietnamese Prime Minister’s visit to China, the US and Brazil; and the National Assembly Chair to Bangladesh and Bulgaria. 

To date, Vietnam has established comprehensive strategic partnerships or strategic partnerships with all permanent countries of the United Nations Security Council and G20 countries.

The historic high-ranking meetings have created new opportunities to continue to enhance Vietnam's reputation in the international arena.

New opportunities have opened up for businesses and people to cooperate in the fields of trade, investment, science and technology, innovation, culture, training, environment and climate change.

Vietnam’s position in international arena

In an article commemorating the 94th anniversary of the Party's establishment, Party Chief Nguyen Phu Trong reiterated the foreign affairs and diplomacy being pursued by Vietnam, imbued with the national identity, the identity of "Vietnamese bamboo".

It is both steadfast in principle and flexible in strategy; both soft, clever and resilient, determined; creative and brave, steadfast in the face of all difficulties and challenges, standing for the independence and freedom of the nation, for the happiness of the People.

With this foreign relation policy, Vietnam has expanded and deepened diplomatic relations with 193 countries, including special relations with three countries, comprehensive strategic partnerships with six countries, strategic partnerships with 12 countries, and 12 comprehensive partnerships.

Lan Anh